Married Couples Allowances could reduce your tax bill each year you’re married or in a civil partnership. For the tax year 2014-2015 tax year, it could cut your tax bill by between £314-£816:50 a year. If you marry or register a civil partnership you’ll get the allowance on a pro-rota basis for the rest of that tax year. If one of you dies or you divorce or separate, the allowance continues until the end of the tax year. You can transfer your Married Couples Allowance to your spouse or civil partner. If you, your spouse or civil partner are separated through circumstance rather than through a decision to formally separate, you can still claim Married Couples Allowance.
Eligibility
You can claim Married Couples Allowance if all the following apply:
*you’re married or in a civil partnership
*you’re living with your spouse or civil partner
*one of you was born before the 6th April 1935
You can still claim Married Couples Allowance if you’re unable to live with your spouse or civil partner because of:
*illness or old age eg. where your spouse or civil partner is in residential care
*working away from home
*an armed force posting
*being in prison
*training or education
How To Claim
If you fill in a Self Assessment tax return each year, claim by completing the Married Couples Allowance section of the tax return.
If you don’t fill in a Self Assessment tax return each year, contact HMRC with details of your:
*marriage or civil partnership ceremony
*spouse or civil partner and their date of birth
To Transfer unused Married Couples Allowance after the tax year ends. If your spouse or civil partner pays tax you can transfer any Married Couples Allowance that you haven’t used because:
*you don’t pay tax
*your tax bill isn’t high enough
Fill inform 515 or ask HMRC to post you a copy
To Share or Transfer your Married Couples Allowance before the Tax Year Starts:-
You or your spouse (civil partner) can:-
*share minimum Married Couples Allowance
*transfer the whole of the minimum Married Couples Allowance from one to the other.
Fill in form 18 before the start of the tax year. You can also contact HMRC to get a copy in the post.
Tax Allowances and Giving to Charity.
If you pay tax and give money to a UK charity by using Gift Aid, contact HMRC. It can increase the tax allowances if you were born before the 6th April 1948. This is from the Gov.UK website (Tax) section for Married Couples Allowances. You can press Calculate your Married Couples Allowance section on the list and work out your individual allowances. This was updated on the 4th March 2015.
Written by Hazel Marsh, Information and Support Co-ordinator
